Calculate the present value of a loan with $25,000 due after 12 years at 6% if the interest was compounded monthly. (the present value is the same as the principal amount of the loan). Discuss how the present value of a compounded loan changes as you increase time?

a) The present value of the loan is $12190.66

b) The present value of the loan decreases as the time increases

Step-by-step explanation:

Step 1 :

Given

Amount after 12 years = $25000

number of years = 12

interest rate = 6% compounded monthly

Step 2 :

The amount is computed using the formula

A = P (

Where P = Principal amount

r = interest rate

n = number of terms

Here,

A = 25000

r = 6% × 12 (as it is compounded monthly)

n = 6 × 12 (as it is compounded monthly)

So we have ,

25000 = P  

=> P(2.05) = 25000

=> P = $12190.66

Step 3 :

The present value of the loan decreases as the time increases

Step 4 :

Answer :

The loan's present value is $12190.66

its definatley   this on your answer choice?

solution:

we have to construct

∠m nt ≅ ∠p qr

the steps to draw this construction are

step 1: use a compass to draw an arc from point q which intersects the side pq at point a and the side qr at point b.

step 2: draw a segment nt and use the same width of the compass to draw an arc from point n which intersects the segment nt at a point x.

step 3:

step 4: join points n and y using a straightedge.

step 3:

option (d).maintaining the same width of the compass as ab, draw an arc from point x such that it intersects the arc drawn from n in a point y.

to draw   congruent angles , 1. width of compasses while drawing two angles should be same i.e from point at which angle has to be drawn, 2.the distance between the two points where the compass intersects the two sides should be same while drawing any two congruent angles.